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Wet Markets, Supermarkets and the "Big Middle" for Food Retailing in Developing Countries: Evidence from Thailand

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Listed author(s):
  • Gorton, Matthew
  • Sauer, Johannes
  • Supatpongkul, Pajaree

Abstract

Summary Drawing on the Big Middle theory of retail evolution, an analysis of secondary and primary survey data on Thai shopping behavior seeks to understand the shift away from wet markets to supermarkets. On all salient attributes affecting retail outlet choice, supermarkets outperform wet markets. While wet markets continue to account for the majority of expenditure on fresh produce their market share has eroded sharply. A bootstrapped bivariate ordered probit model identifies the characteristics of supermarket and wet market shoppers. The analysis questions previous work which perceived wet markets in East Asia as possessing a long-term competitive advantage in food retailing.

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Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 9 (September)
Pages: 1624-1637

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:9:p:1624-1637
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

Keywords: food retailing supermarkets wet markets Asia Thailand;

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  1. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
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  4. Bart Minten, 2008. "The Food Retail Revolution in Poor Countries: Is It Coming or Is It Over?," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 767-789.
  5. Wang, Zhigang & Mao, Yanna & Gale, Fred, 2008. "Chinese consumer demand for food safety attributes in milk products," Food Policy, Elsevier, vol. 33(1), pages 27-36, February.
  6. Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
  7. Horowitz, Joel L., 2001. "The Bootstrap," Handbook of Econometrics,in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 52, pages 3159-3228 Elsevier.
  8. Montchai Pinitjitsamut, 2009. "The inequality of opportunity to participate in Thailand higher education," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 1(1), pages 66-94.
  9. Thomas Reardon & Spencer Henson & Julio Berdegué, 2007. "'Proactive fast-tracking' diffusion of supermarkets in developing countries: implications for market institutions and trade," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 399-431, July.
  10. Figui, Muriel & Moustier, Paule, 2009. "Market appeal in an emerging economy: Supermarkets and poor consumers in Vietnam," Food Policy, Elsevier, vol. 34(2), pages 210-217, April.
  11. Neven, David & Odera, Michael Makokha & Reardon, Thomas & Wang, Honglin, 2009. "Kenyan Supermarkets, Emerging Middle-Class Horticultural Farmers, and Employment Impacts on the Rural Poor," World Development, Elsevier, vol. 37(11), pages 1802-1811, November.
  12. Mergenthaler, Marcus & Weinberger, Katinka & Qaim, Matin, 2009. "The food system transformation in developing countries: A disaggregate demand analysis for fruits and vegetables in Vietnam," Food Policy, Elsevier, vol. 34(5), pages 426-436, October.
  13. Reardon, Thomas & Gulati, Ashok, 2008. "The supermarket revolution in developing countries: Policies for "competitiveness with inclusiveness"," Policy briefs 2, International Food Policy Research Institute (IFPRI).
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Cited by:

  1. Ortega, David L. & Wang, H. Holly & Wu, Laping & Hong, Soo Jeong, 2015. "Retail channel and consumer demand for food quality in China," China Economic Review, Elsevier, vol. 36(C), pages 359-366.
  2. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries: Selected hypotheses on nutritional implications," Food Policy, Elsevier, vol. 42(C), pages 139-150.
  3. Wongprawmas, Rungsaran & Canavari, Maurizio, 2015. "Heterogeneity in consumer preferences for food safety lavel in Thailand," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202744, European Association of Agricultural Economists.
  4. Madhavan-Nambiar, Padmanand & Florkowski, Wojciech & Chinnan, Manjeet & Ressurrecion, Anna, 2015. "Shopping outlet choice and frequency in urban areas of the Republic of Uganda," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196821, Southern Agricultural Economics Association.
  5. Tiwary, A. & Williams, I.D. & Pant, D.C. & Kishore, V.V.N., 2015. "Emerging perspectives on environmental burden minimisation initiatives from anaerobic digestion technologies for community scale biomass valorisation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 883-901.
  6. Ali, Ghaffar & Nitivattananon, Vilas & Abbas, Sawaid & Sabir, Muazzam, 2012. "Green waste to biogas: Renewable energy possibilities for Thailand's green markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5423-5429.

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